polygon

Bitcoin trades in a predictable range, but will the sideways price action tempt altcoin traders to open new positions?

A trending move in an asset class attracts traders, while a dull price action drives investors to the sidelines. Bitcoin (BTC) has largely been stuck in a range for the past several months, which could be one of the reasons for the drop in spot volumes. Bloomberg reported on Oct. 11 that Coinbase’s spot trading volume plunged 52% in Q3 2023 compared to Q3 2022.

While the short-term remains uncertain, traders need to be watchful because long consolidations are generally followed by an explosive price action. The only problem is that it is difficult to predict the direction of breakout with certainty. Considering that the bulls have not allowed Bitcoin to dip back below $25,000 in the past few months, it increases the likelihood of an upside breakout.

Investing legend Paul Tudor Jones said in a recent interview on CNBC that he is not bullish on the equities markets as he believes that an escalation in the Israel–Hamas conflict may bring about a risk-off sentiment. If that happens, it will be bullish for gold and Bitcoin, Jones added.

Wil bears sink Bitcoin below the immediate support and could that cause a further? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin sliced through the 20-day exponential moving average ($27,148) on Oct. 11 but the bears could not tug the price below the 50-day simple moving average ($26,634).

The bulls successfully defended the 50-day SMA on Oct. 11 and Oct. 12 but they are struggling to start a rebound. This suggests a lack of demand at higher levels.

The bears will next attempt to sink the price below the 50-day SMA and come out on top. If this level gives way, the BTC/USDT pair could retest the strong support at $26,000. This level is likely to witness aggressive buying by the bulls.

A rally above the 20-day EMA will be the first indication of strength. The pair could then climb to the stiff overhead resistance at $28,143. This is an important level to watch out for because a close above it could signal the start of a short-term up-move.

Ether price analysis

Ether (ETH) dipped to the critical support at $1,531 on Oct. 12 but a minor positive is that the bulls successfully held this level.

The RSI is showing signs of a positive divergence, indicating that the bearish momentum may be weakening. The bulls will try to push the price to the moving averages where the bears are again likely to mount a strong defense.

If the price turns down sharply from the 20-day EMA ($1,606), it will suggest that bears remain in command. The ETH/USDT pair could then crumble below $1,531 and start its descent word $1,368.

If bulls want to prevent the fall, they will have to kick the price above the moving averages. The pair may then climb to $1,746 where the bulls may again face strong selling by the bears.

BNB price analysis

BNB (BNB) fell to the strong support at $203 but the long tail on the candlestick shows that the bulls are protecting the level with force.

The bulls will have to quickly thrust the price above the moving averages and the downtrend line to indicate that the bears may be losing their grip. The BNB/USDT pair could then start an up-move to $235 and later to $250.

On the contrary, if the price turns down from the moving averages, it will indicate that every minor rise is being sold into. A break below the $203 support will complete a descending triangle pattern, which could start a downward move to $183.

XRP price analysis

XRP (XRP) fell below the uptrend line on Oct. 11, indicating that the bullish pressure is reducing. The drop suggests that the price will continue to oscillate between $0.41 and $0.56 for a while longer.

There is support at $0.46 but if it cracks, the XRP/USDT pair may tumble to the important level at $0.41. The bulls are expected to buy this dip aggressively, which could keep the range-bound action intact.

On the upside, a break and close above the moving averages will be the first sign of strength. The buyers will then make one more attempt to drive the price to the overhead resistance at $0.56. A break and close above this level will indicate the start of a new potential uptrend.

Solana price analysis

Solana (SOL) slipped below the 20-day EMA ($21.72) on Oct. 12, indicating that the bears are maintaining their pressure.

Both moving averages have flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. The bears will try to strengthen their position by dragging the price below the 50-day SMA ($20.44). If they do that, the SOL/USDT pair could slump to $17.33.

On the other hand, if the price turns up and rises above $22.50, it will tilt the short-term advantage in favor of the buyers. The pair could then rise to the neckline of the inverse head and shoulders pattern.

Cardano price analysis

Cardano (ADA) has formed long tails on successive candlesticks since Oct. 9 but the bulls failed to start a recovery. This suggests a lack of demand at higher levels.

The ADA/USDT pair is near the $0.24 support and the RSI is showing signs of a positive divergence. This suggests that the selling pressure is reducing and a relief rally is possible. The first stop on the upside is likely to be the moving averages. If this resistance is crossed, the pair may reach $0.27 and then $0.28.

Contrary to this assumption, if the price continues lower and skids below $0.24, it will indicate that the bears are in no mood to relent. That could clear the path for a fall to $0.22 and eventually to $0.20.

Dogecoin price analysis

Dogecoin (DOGE) has been trading below the $0.06 support since Oct. 9, suggesting that the markets have accepted the lower levels.

The bears will try to sink the price to the vital support at $0.055. This level is likely to witness strong buying by the bulls. If the price rebounds off this level, the DOGE/USDT pair may consolidate between $0.055 and $0.06 for some time.

The downsloping moving averages and the RSI near the oversold zone indicate that bears have the upper hand. If bulls want to make a comeback, they will have to quickly propel the price above the moving averages. That could start a recovery to $0.07.

Related: Why is Bitcoin price stuck?

Toncoin price analysis

Toncoin (TON) has been in a corrective phase for the past few days. Profit booking by the traders pulled the price below the 50-day SMA ($1.98) on Oct. 12.

The bulls are trying to reclaim the level and push the price back above the moving averages over the next few days. If they manage to do that, it will indicate that the break below the 50-day SMA may have been a bear trap. That could open the doors for a possible rise to $2.31.

Instead, if the TON/USDT pair turns down from the moving averages, it will suggest that the sentiment has turned negative and every relief rally is being sold into. That will increase the risk of a fall to $1.60.

Polkadot price analysis

Polkadot (DOT) continued its decline in the past few days and reached near the target objective at $3.50 on Oct. 12. This level is likely to act as a solid support.

On the way up, the 20-day EMA ($3.95) is the key level to keep an eye on. If the price turns down from the 20-day EMA, it will signal that traders are selling on relief rallies. That could enhance the prospects of a drop below $3.50.

Contrarily, if bulls drive and sustain the price above the 20-day EMA, it will indicate that the markets have rejected the lower levels. That may trap the aggressive bears, resulting in a short squeeze toward the downtrend line.

Polygon price analysis

Polygon (MATIC) continues to weaken toward the critical support at $0.49, indicating that the bulls are not risking a buy at higher levels.

In a range, traders generally buy near the support and sell close to the resistance. In this case, the bulls are likely to buy the dips to $0.49 with vigor. If the price turns up from this level with strength, the MATIC/USDT pair may reach the moving averages.

If the price turns down sharply from the moving averages, it will increase the likelihood of a break below $0.49. If that happens, the pair could plunge to $0.45.

On the contrary, a rally above the moving averages will signal that the range-bound action may extend for a few more days.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin and select major altcoins are under pressure as the September Producer Price Index report shows wholesale inflation surged to 0.5%, exceeding the markets' expectation.

Buyers are finding it difficult to maintain Bitcoin (BTC) price above $27,000. The selling increased after the September producer price index rose 0.5% for the month versus expectations for a 0.3% increase. This shows that the inflation pressures are unlikely to ease in a hurry for the United States economy.

The uncertain near-term environment has shifted analysts’ focus to November and the upcoming halving event expected in April 2024. Crypto analyst Miles Deutscher cited a chart from CryptoCon and said that if history repeats itself, then Bitcoin may turn up by November 21 and start its journey higher to the next halving.

Going further ahead to 2026, BitMEX founder Arthur Hayes is even more bullish. While speaking as a guest on Impact Theory with Tom Bilyeu, Hayes said that Bitcoin’s price could reach $750,000 to $1 million by 2026. Hayes argues that incessant money printing by the U.S. government to avoid a financial crisis will trigger a massive bull market in several asset classes.

Several analysts are bullish about the long-term but the near-term remains uncertain due to various headwinds. Could Bitcoin and altcoins stage a recovery or will they continue moving lower? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

After finding support at the 20-day exponential moving average ($27,227) for the past two days, Bitcoin broke below the level on Oct. 11. This shows that the bears are trying to seize control.

The next support to watch on the downside is the 50-day simple moving average ($26,615). If this level cracks, it will suggest that the traders are rushing to exit. The BTC/USDT pair could then slump to $26,000 and eventually retest the support at $24,800.

If the price rebounds off the 50-day SMA, the bulls will attempt to propel the price above the 20-day EMA. That could open the doors for a potential rally to $28,143.

The flattish 20-day EMA and the relative strength index (RSI) just below the midpoint suggest a possible range-bound action in the near term.

Ether price analysis

Ether (ETH) has been finding buyers near the $1,531 support for the past two days, which is a positive sign. This suggests that the price will continue to swing between $1,531 and $1,746 for some more time.

The positive divergence on the ETH/USDT pair suggests that the selling pressure may be reducing near $1,531. This may start a relief rally, which could reach the 20-day EMA ($1,619). If the price turns down from this level, the bears will make another attempt to yank the pair below $1,531 and start a downward move to $1,368.

Contrarily, a rise above the moving averages will suggest strong accumulation at lower levels. The pair may then attempt a rally to $1,746. The bulls may find it difficult to break above this level but if they do that, the pair could climb to $1,961.

BNB price analysis

BNB (BNB) fell below the uptrend line on Oct. 9 but bounced off the strong support at $203. This indicates that the price is range-bound between $203 and $220.

The long wick on the Oct. 10 candlestick indicates that the bears are selling the rallies to the moving averages. The bears again redoubled their efforts to strengthen their position by dragging the price below $203.

The next trending move is likely to begin on a break below $203 or on a rally above $220. If the $203 support gives way, the BNB/USDT pair may crash to $183. On the contrary, a rise above $220 could open the doors for a potential rally to $235 and thereafter to $250.

XRP price analysis

Buyers could not build upon the breakout above the symmetrical triangle and overcome the barrier at $0.56. This shows that XRP’s (XRP) demand dries up at higher levels.

The price turned down and broke below the moving averages on Oct. 9. This was the first indication that the bulls have given up. The selling picked up further on Oct. 11 and the bears pulled the XRP/USDT pair below the uptrend line. This suggests that the pair may extend its stay between $0.41 and $0.56 for some more time.

On the downside, the first support is at $0.46 and after that at $0.41. Contrarily, attempts to start a recovery are likely to face selling at the moving averages and then at $0.56.

Solana price analysis

Solana (SOL) is one of the stronger major cryptocurrencies as it is trading above the immediate support at the 20-day EMA ($21.79).

If the price turns up from the current level, the SOL/USDT pair will attempt to form a bullish inverted head and shoulders pattern. This reversal setup will complete on a break and close above the neckline. The target objective of this setup is $32.81 but its efficacy reduces slightly as it has formed inside a consolidation.

If bulls fail to start a strong rebound off the 20-day EMA soon, the bears will be strengthened. They will then try to tug the price to the 50-day SMA ($20.44). If this level gives way, the next stop may be $18.50 and later $17.33.

Cardano price analysis

The bears dragged Cardano (ADA) back below the moving averages on Oct. 9, indicating a lack of demand at higher levels.

The ADA/USDT pair could retest $0.24, which is an important support to keep an eye on. The positive divergence on the RSI suggests that the bulls are likely to protect the $0.24 level with vigor. They will then have to drive the price above the moving averages to signal further strength.

Contrarily, a break and close below $0.24 will indicate the start of the next leg of the downtrend. The pair may first skid to $0.22 and eventually to $0.20.

Dogecoin price analysis

Dogecoin (DOGE) plunged and closed below the $0.06 support on Oct. 9, indicating that the bears are in charge.

The long tail on the Oct. 9 candlestick shows that the bulls are aggressively defending the support at $0.055. If buyers want to make a comeback, they will have to quickly push the price back above the breakdown level of $0.06 and then extend the recovery over the moving averages.

If they fail to do that, the bears will continue to put pressure on the $0.055 support. If this level cracks, the DOGE/USDT pair could retest the pivotal support near $0.05. This level is again expected to attract solid buying by the bulls.

Related: JPMorgan debuts tokenization platform, BlackRock among key clients: Report

Toncoin price analysis

The bulls failed to sustain Toncoin (TON) above the 20-day EMA ($2.06) on Oct. 7, indicating that the bears are selling on relief rallies.

A minor positive in favor of the bulls is that they have managed to keep the TON/USDT pair above the 50-day SMA ($1.96). The buyers will next try to clear the overhead hurdle at the 20-day EMA. If they manage to do that, the TON/USDT pair could rise to $2.18 and subsequently to $2.32.

Meanwhile, the bears are likely to have other plans. They will try to sink and sustain the price below the 50-day SMA. If they succeed, the pair could start a downward move toward $1.60.

Polkadot price analysis

The bears made their move on Oct. 9 and yanked Polkadot (DOT) below the vital support at $3.91. The bulls tried to push the price back above the breakdown level on Oct. 10 but the bears held their ground.

Selling resumed on Oct. 11 and the bears are trying to sink the price toward the next target objective at $3.50. Although the downsloping moving averages indicate that bears remain in command, the positive divergence on the RSI offers a small ray of hope for the bulls that a reversal is possible.

The first sign of strength will be a break and close above $3.91. That may trap the aggressive bears, resulting in a short squeeze. The DOT/USDT pair will then attempt a rally to the 50-day SMA ($4.16).

Polygon price analysis

Polygon (MATIC) turned down and broke below the moving averages on Oct. 9, indicating that the $0.49 to $0.60 range remains intact.

Losing the 20-day EMA ($0.53) support is a negative sign and it puts the onus on the bulls to defend the crucial support at $0.49. If the price rebounds off this level, it will indicate that the bulls remain buyers on dips. That could keep the MATIC/USDT pair stuck inside the range for a while longer.

This neutral view will invalidate in the near term if the price continues lower and plummets below $0.49. The pair will then indicate the start of the next leg of the downtrend toward $0.45.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin is consolidating at the top of its range and this is inspiring traders' confidence in a variety of altcoins.

United States 10-year Treasury yields soared above 4.8% on Oct. 3, their highest level since 2007. DoubleLine Capital CEO Jeffrey Gundlach said in a post on X (formerly Twitter) that the spread between the 2-year and 10-year Treasury yields has narrowed from 109 basis points a few months ago to 35 basis points. He cautioned that this “should put everyone on recession warning.”

Arthur Hayes, former CEO of crypto exchange BitMEX, warned in a recent X thread that the government will have to print money to save the bond market as a faster bear steepener — a condition where long-term interest rates rise more quickly than short-term rates — will cause firms to collapse. Some investors believe that this could trigger a cryptocurrency bull market.

It also looks like the institutional investors have started to warm up to cryptocurrencies. CoinShares’ latest Digital Asset Fund Flows Weekly Report shows inflows of $21 million into digital asset investment products for the first time in six weeks.

In this uncertain macro environment, let’s take a look at the charts to determine the next potential move.

Bitcoin price analysis

Bitcoin (BTC) rose above $28,143 on Oct. 2 but the long wick on the candlestick shows the bears are aggressively selling at higher levels. The bears tried to build upon their advantage on Oct. 3 but the bulls held their ground at $27,160.

The upsloping 20-day exponential moving average ($26,903) and the relative strength index (RSI) in the positive territory indicate that bulls have the upper hand. Buyers will once again try to clear the overhead resistance at $28,143.

A close above this level will complete a short-term double bottom pattern, which has a target objective of $31,486.

This positive view will be invalidated if the price once again turns down from the overhead resistance and plummets below the 20-day EMA. That could yank the price to $26,000. The BTC/USDT pair could then continue to consolidate between $24,800 and $28,143 for a while longer.

Ether price analysis

Ether (ETH) turned down sharply from the overhead resistance of $1,746 on Oct. 2, indicating that the bears are fiercely guarding this level.

The 20-day EMA ($1,640) is flattening out and the RSI is near the midpoint, indicating a balance between supply and demand. If the price turns up from the current level, the bulls will again try to overcome the obstacle at $1,746. If they can pull it off, the ETH/USDT pair will complete a double bottom pattern, having a target objective of $1,961.

On the other hand, if the price continues lower and tumbles below the moving averages, it will suggest that the pair may extend its stay inside the $1,531 to $1,746 range for some more time.

BNB price analysis

BNB (BNB) jumped above the $220 resistance on Oct. 2 but the bulls could not sustain the breakout as seen from the long wick on the day’s candlestick.

The failure of the bulls to maintain the price above the 20-day EMA ($214) is a negative sign. It shows that traders are rushing to the exit. The BNB/USDT pair could next fall to the uptrend line.

If the price rebounds off this level, the bulls will again try to push the pair above $220. A close above this resistance could signal the start of an up-move to $235 and thereafter to $250. Instead, if the price breaks below the uptrend line, the pair may decline to the formidable support at $203.

XRP price analysis

Buyers pushed XRP (XRP) above the symmetrical triangle pattern on Sep. 29 and then foiled several attempts by the bears to pull the price back into the triangle.

The bulls will next try to surmount the overhead resistance at $0.56. If they are successful, it will signal the start of a new uptrend. The XRP/USDT pair could then start its journey toward the pattern at $0.66.

Conversely, if the price turns down from $0.56 and dives below the uptrend line, it will suggest that the bulls are booking profits. That could keep the pair range-bound between $0.56 and $0.41 for a few more days.

Solana price analysis

Solana (SOL) has been oscillating inside a large range between $14 and $27.12. The price action of the past few days has resulted in the formation of a potential inverse head and shoulders pattern.

Although setups formed inside a range tend to be less reliable, still they should not be neglected. If the price turns up and breaks above the neckline, the SOL/USDT pair could attempt a rally to $27.12 and eventually to the pattern target of $32.81.

The critical support to watch on the downside is the 20-day EMA ($20.95). If the price slides below this level, it will suggest that the bulls have given up. That could open the gates for a possible drop to $17.33.

Cardano price analysis

Cardano (ADA) turned down from $0.27 on Oct. 2 and reached the 20-day EMA ($0.25) on Oct. 4. This is an important level to keep an eye on in the near term.

If the price rebounds off the 20-day EMA, it will indicate a change in sentiment from selling on rallies to buying on dips. The bulls will then try to shove the price above $0.27 and start an up-move to $0.29 and later to $0.32.

If bears want to prevent the rally, they will have to drag the price below the 20-day EMA. The ADA/USDT pair may then once again descend to the vital support at $0.24. The bulls are likely to protect this level with vigor.

Dogecoin price analysis

The bulls pushed Dogecoin (DOGE) above the 50-day SMA ($0.06) on Oct. 2 but could not sustain the higher levels. This suggests that bears are selling on every minor relief rally.

The DOGE/USDT pair has reached the formidable support at $0.06. The repeated retest of a support level within a short interval tends to weaken it. If the $0.06 level cracks, the pair may slump to the next major support at $0.055.

A minor advantage in favor of the buyers is that the RSI has formed a bullish divergence. This suggests the bears may be losing their grip. The indicators are not providing clarity about the next move. Hence, it is best to wait for the price to close above the 50-day SMA or plunge below $0.06 to place directional bets.

Related: Bitcoin traders hope $27K holds as BTC price ignores volatile US dollar

Toncoin price analysis

Toncoin (TON) fell below the 20-day EMA ($2.09) on Sep. 30 and the bears thwarted attempts by the bulls to reclaim the level on Oct. 1.

The bears are trying to solidify their position by sinking the price to the 50-day SMA ($1.86). This level may result in a rebound that is likely to face selling at the 20-day EMA.

If the price turns down from this resistance, it will suggest that the sentiment has turned bearish and traders are selling on rallies. That will increase the likelihood of a drop below the 50-day SMA.

On the contrary, if the price turns up and surges above the 20-day EMA, it will suggest that the markets have rejected the lower levels. The TON/USDT pair could then rise to $2.32 where the bears will again try to halt the up-move.

Polkadot price analysis

Polkadot (DOT) turned down sharply from the 50-day SMA ($4.24) on Oct. 2 and broke below the 20-day EMA ($4.10) on Oct. 3.

The bears challenged the important support at $3.91 on Oct. 4 but the long tail on the candlestick shows strong buying at lower levels. The RSI has formed a bullish divergence, indicating that the sellers may be losing their grip.

If the bulls push the price above the 20-day EMA, it will suggest that the DOT/USDT pair may extend its stay inside the $4.33 to $3.91 range for some more time. The bears will have to sink the price below $3.91 to start the next leg of the downtrend to $3.50.

Polygon price analysis

After witnessing a tough battle between the bulls and the bears near the moving averages, Polygon (MATIC) bounced on Oct. 4, indicating that buyers are trying to take charge.

The bulls are trying to build upon the strength and propel the price above the overhead resistance at $0.60. If they manage to do that, it will signal the start of a sustained recovery. The MATIC/USDT pair could then rise to $0.70.

Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it will indicate that the bears are active at higher levels. The pair may then retest the crucial support at $0.49. This level is likely to attract solid buying by the bulls.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.